Economy of the money, by the money, but for the people!

Study on Economy by Sociology

Time to look at the Economic system

(Introduction to Sociology/Economy)

Intro

 In short, the economy is mean how to run money. Someone asked, 'What is economy?' perhaps your answer is 'It's meant how to run money' and i think this is universal answer by the common person.

 

The Definition of Economic

 However, entering more deeply, economy is the ways people use their environment to meet their material needs. and also economy is includes the production, exchange, distribution, and consumption of goods or services of that area. There many factors give context, content, and set the conditions and parameters in which an economy functions. In that sense, the economy is including the Wall Street in New York to fishermen of Somalia.

 

The history of economic

The ancient economy was mainly based on subsistence farming. And for most people the exchange of goods occurred through social relationships. There were also traders who bartered in the marketplaces. Reached even in Medieval times, what we now call economy was not far from the subsistence level. Most exchange betide within social groups. A full-fledged economic system of capital is starting to European colonies.

 

"Colonial capitalism has brought of real economic growth."

 

The first economist in the true meaning of the word was the Scotsman Adam Smith (1723-1790). According to the Wiki, He defined the elements of a national economy: products are offered at a natural price generated by the use of competition - supply and demand - and the division of labour. He maintained that the basic motive for free trade is human self interest. Since the in Europe, capitalism started to replace the system of mercantilism and led to economic growth. Although only the West feast. Since the industrial revolution, capitalism had grown increasingly awash, but make socialism was born, socialism had challenge to capitalism.